Loading...
2020-01-02Golden Valley • Crystal • New Hope AGENDA JOINT WATER COMMISSION January 8, 2020-1:30 pm City Council Conference Room Golden Valley City Hall 1. Call to Order 2. Approval of Minutes— December 4, 2019 kApproved 3-0) 3. Approve purchase of Emergency Repair Parts (Sete) (Approved 3-0) 4. Authorize Agreement with Total Control for Crystal Pump Station Cradle Point Upgrades (Sete) (Approved 3-0) 5. Resolution #20-01 Designating Depositories for Joint Water Fund (Virnig) (ApprovPri 3-0) 6. Resolution #20-02 Making Annual Elections for the 2020-2021 Insurance Policy (Virnig) (Approved 3-0) 7. Approve Contract with MMRK Certified Public Accountants to perform 2019 Audit (Virnig) (Approved 3-0) 8. TAC Update, November 27, 2019 (Kakach) 9. Other Business Next Scheduled Meeting February 5, 2020 10. Adjournment This document is available in alternate formats upon a 72-hour request. Please call 763-593-8006 (TTY: 763-593-3968) to make a request. Examples of alternate formats may include large print, electronic, Braille, audiocassette, etc. JOINT WATER COMMISSION MINUTES Golden Valley - Crystal - New Hope Meeting of December 4, 2019 The Golden Valley — Crystal — New Hope Joint Water Commission (JWC) meeting was called to order at 1:30 pm in the City of Golden Valley Council Chambers. Commissioners Present Anne Norris, City Manager, Crystal - Kirk McDonald, City Manager, New Hope Tim Cruikshank, City Manager, Golden Valley Staff Present Jeff Oliver, City Engineer, Golden Valley Joe Hansen, Utilities Supervisor, Golden Valley Dave Lemke, Operations Manager, New Hope Marc Nevinski, Physical Development Director, Golden Valley Mark Ray, Director of Public Works/City Engineer, Crystal Matt Rowedder, Utilities Maintenance Supervisor, New Hope Pete Sele, Lead Person, Crystal Tim Kieffer, Public Works Maintenance Supervisor, Golden Valley Sue Virnig, Finance Director, Golden Valley Bernie Weber, Public Works Director, New Hope Maria Cisneros, City Attorney, Golden Valley Approval of Revised Minutes —September 4 2019 October 2, 2019 meeting cancelled. November 6, 2019 Meeting Cancelled. Moved by McDonald seconded by Cruikshank to approve the revised minutes of the September 4, 2019 Joint Water Commission Meeting. Motion carried. Approve Contract Increase for the 500,000 Gallon Water Elevated Tank Rehabilitation Staff reported to the Commission that the costs associated with the project have exceeded the original estimates. As of November 22, 2019, the cost increases are approximately $32,600. The increases are a result of additional time provided by KLM and Stantec related to construction observations and administration services. Due to the delays by the tank reha bilitation. contractor, site restoration work was not completed 2018. This site restoration work is scheduled to be completed in early 2020. This will have no impact on the budget amount for the project. Motion by McDonald seconded by Cruikshank to accept Stantec Consulting Services Proposal to increase the original budget amount of $100,000 to $132,578. Motion carried. Award the Joint Water Commission Golden Valley Reservoir Repair Project for Cleaning, Repairing, and Painting the 4,500,000 Gallon North and South Reservoirs and Clearwell with Slack Painting, LLC Staff provided an overview of the project. Staff reported on the November 14, 2019 bid opening and provided an evaluation of the bids. Staff found them to be in order with the lowest responsible bidder being Slack Painting, LLC. Motion by McDonald seconded by Cruikshank to award the Joint Water Commission Reservoir Repair Project to Slack Painting, LLC in an amount not to exceed $138,000. Motion carried. Approve Service Agreement for the Pump House Generators in Crystal and in Golden Valle Joint Water Commission December 41 2019 Page 2 of 3 Staff is recommending the Joint Water Commission combine the two service agreements with Ziegler Power Systems for the pump house generators located in Crystal and in Golden Valley. Each generator is on a three—year maintenance cycle and staff is requesting to combine these services agreements. To do this, the Joint Water Commission will be need to extend the contract for the Crystal generator for two years. The terms of the two-year customer support agreement are $6,011.44 per year and will begin March 1, 2020. There are no cost savings by combining the agreements; however it is a benefit to staff to have the generators on the same cycle. Motion by McDonald seconded by Cruikshank to approve Ziegler Power System Customer Support Agreement two-year extension for the generator maintenance. Motion carried. Discussion of Joint Water Commission Contract Documents and Counsel Staff is requesting discussion regarding the Joint Water Commission contract process. Staff is requesting discussion on the concept of one universal contract for all Joint Water Commission projects and request the Golden Valley City Attorney review all contracts. At this time, each city is responsible for the projects taking place in their city. Within the cities of Crystal and New Hope all contracts/projects are brought to their respective City Councils for awarding of contracts. This includes all aspects of the contract process. The process includes but is not limited to attorney reviews, feasibility studies, contracts, insurance requirements, and funding specifics of the project. In this way, the elected officials from New Hope and Crystal are charged with approving larger dollar amount projects. The Commissioners will revisit this at the March 4, 2020 Joint Water Commission Meeting. No action is required TAC Update Staff reported on the following: Elevated Towers Work completed except turf and hard surface restoration scheduled for spring of 2020 Reservoir Work 65-17: Golden Valley Project was awarded to Keys well Drilling Pump has been installed and will be wired and balanced in December Crystal pump and motor will be pulled and replaced late winter/early spring Golden Valley reservoir crack filling project awarded to Slack Painting LLC December to March 2020 Construction Golden Valley will drain reservoir in December to prepare for crack filling project Valve Reolacement Douglas and 39th valve replaced this year 2020 project will focus near Crystal reservoir and on 42"d heading west from Douglas Will replace a 16-inch valve within Crystal, Pennsylvania and 32nd Tower Painting KLM provided specs and project manual for Golden Valley Tower painting Staff is working with KLM on schedule (May 2020 to August 2021 construction) Golden Valley will replace altitude valve while tower is down for painting Miscellaneous Between the three JWC cities, we will stock two sets of PCCP to DIP pipe adapters for each size JWC pipe. Adapters to be store in Medicine Lake Road Tower JWC TAC will perform an EPA Vulnerability Self -Assessment and work with a local Emergency Management team to present our Emergency Response Plan Joint Water Commission December 4, 2019 Page 3 of 3 Other Business None at this time Adjournment Moved by McDonald seconded by Norris to adjourn meeting. Motion carried. Chair Norris adjourned the meeting at 1:30 pm. Ch r Anne Norris ATTEST. Sue rchwalbe, Recording Secretary Joint Water Commission Golden Valley -Crystal -New Hope January 8, 2020 Agenda Item 3 Emergency PCCP repair parts Prepared by Patrick Sele, Crystal Utility Supervisor Summary The Joint Water Commission requires specific equipment in the inventory to effectively repair the PCCP in the event of a water main break. Staff has completed an inventory in Crystal, Golden Valley and New Hope parts and determined the following items as necessary to replace inventory. Each item will have two sets of parts to make repairs as necessary. Two quotes were received: • Ferguson's $20,337.75 • Core and Main $22,594.00 Financial Or Budget Considerations The 2020 General Fund Budget has $125,000 for various professional services. Staff recommends Ferguson for $20,337.75. Recommended Action Motion to approve the Ferguson quote in the amount of $20,337.75 Attachments • Core and Main quote (1 page) • Ferguson quote (1 page) I:1Joint Water Commission\JWC Agendas12020 AgendalJanuary 8 Agendal3 - JWC PCCP memo 01-03-2020.docx • 8tMAIPA Bid Proposal for Crystal DIP & Fittings CITY OF CRYSTAL Core & Main Bid Date: 12/03/2019 15800 W 79th St Core & Main 1147855 Eden Prairie, MN 55344 Phone: 952-937-9666 Fax: 952-937-8065 Seq# Qty Description Units Price Ext Price 10 ( 3 16" MJ LONG SLEEVE EA { 285.001 855.00 i i 20 I 6 1- 6-" MJ DI RESTRAINT EA 128.00 E 768 06 30 6 16" MJ GASKET EA ; 8.10 j 48 60 40 72 3/4"X4-1/2" BLUE MJ BOLT & NUT EA j 2.50 18LO0 j Average price per EA 6�17 20 j i 60 2 18" MJ LONG SLEEVE_ EA ! 364.06 728.001 I 70 4 18" MJ DI RESTRAINT EA ' 182.00 728.00( 80 4 18" MJ GASKET EA -9.55 38.2011 90 4-8 3/4"X4-1/2" BLUE MJ BOLT &NUT _.__._. _ _ - .- .-- I EA i � 2— .50 1 6 ' 1200 .0 _ Average price per EA 807.10 110 -.._._. 2 24" MJ LONG SLEEVE _ _. - - - EA ! � 576.00 i � 1 152.00 _.r_-_-8_ 120 4 24" _MJ DI RESTRAINT E_A 310.00J 1,240.00 130 4 24" MJ GASKET i EA 12.20 i 48.80 I 140 64 3/4" X 5" BLUE MJ BOLT & NUT EA_ 2.60 166.40 i Average price per EA 1,303.60 160 3 30" M1 LONG SLEEVE EA ! 1,210 00 ! 3,630.001 170 6 30" MJ DI RESTRAINT EA 715.001 4,290.001 180 6 30" MJ GASKET EA_ ? 30.0_0 ! 180.00 i 190 _. _. 120 1" X 6" BE MJ BOLT & NUT _ .... _ LU_._,. ._ - EA 7.451 894.00 Average price per EA 2,998.00 210 20 I j 16" T1 CL52 DI PIPE E FT 58.90 1,178.00 i 220 20 i 18TJ " CL52 DI PIPE FT j 67.80 1,356.00; 230 20 124" TJ CL52 DI PIPE FT j 97.05 1,941.00 j 240 20 130" TJ CL52 DI PIPE FT ! 152.60 3,052.00 ! 250 DIP -GAUGED PIPE i Branch Terms: UNLESS OTHERWISE SPECIFIED HEREIN, PRICES QUOTED ARE VALID IF ACCEPTED BY CUSTOMER AND PRODUCTS ARE RELEASED BY CUSTOMER FOR MANUFACTURE WITHIN THIRTY (30) CALENDAR DAYS FROM THE DATE OF THIS QUOTATION. CORE & MAIN LP RESERVES THE RIGHT TO INCREASE PRICES UPON THIRTY (30) CALENDAR DAYS' NOTICE TO ADDRESS FACTORS, INCLUDING BUT NOT LIMITED TO, GOVERNMENT REGULATIONS, TARIFFS, TRANSPORTATION, FUEL AND RAW MATERIAL COSTS. DELIVERY WILL COMMENCE BASED UPON MANUFACTURER LEAD TIMES. ANY MATERIAL DELIVERIES DELAYED BEYOND MANUFACTURER LEAD TIMES MAY BE SUBJECT TO PRICE INCREASES AND/OR APPLICABLE STORAGE FEES. THIS BID PROPOSAL IS CONTINGENT UPON BUYER'S ACCEPTANCE OF SELLER'S TERMS AND CONDITIONS OF SALE, AS MODIFIED FROM TIME TO TIME, WHICH CAN BE FOUND AT: httos://corgandmain.com[TandC/ 12/04/2019 - 8:17 AM Actual taxes may vary Page 1 of 1 FERGUSON WTE Z FERGUSON® 1694 91STT A EANERWORKS #2518 WATERWORKS BLAINE. MN 55449-4311 Phone: 763-560-5200 Fax: 763-560-1799 11:59:41 DEC 09 2019 Bid No: B130079 Bid Date: 12/05/19 Quoted By: STS Veliver To: From: Michael P Fries omments: Page 1 of 2 Customer: CITY OF CRYSTAL ATTN ACCOUNTS PAYABLE 4141 DOUGLAS DR N CRYSTAL, MN 55422 Cust PO#: FERGUSON WATERWORKS #2518 Price Quotation Phone: 763-560-5200 Fax: 763-560-1799 Cust Phone: 763-531-1000 Terms: NET 10TH PROX Ship To: CUSTOMER PICK-UP Job Name: Item Description Quantity Net Price UM Total MJLSLA16 16X15 MJ C153 LONG SLV L/A 3 293.163 EA 879.49 MJLSLA18 18X15 MJ C153 LONG SLV L/A 2 374.870 EA 749.74 WLSLA24 24X15 MJ C153 LONG SLV L/A 2 558.320 EA 1116.64 MJLSLA30 30X24 MJ C153 LONG SLV L/A 3 813.257 EA 2439.77 E111600 16 MEGALUG F/ DI 6 146.617 EA 879.70 E111800 18 MEGALUG F/ DI 4 203.780 EA 815.12 E2018PV 18 MEGALUG F/ C905 PVC 0 326.290 EA 0.00 E112400 24 MEGALUG F/ DI 4 363.693 EA 1454.77 E2024PV 24 MEGALUG F/ C905 PVC 0 466.860 EA 0.00 E1130EG 30 MEGALUG F/ DI W/ EBAA SEAL GSKT 4 815.630 EA 3262.52 MJGA16 16 MJ GSKT 6 13.077 EA 78.46 MJGA18 18 MJ GSKT 4 14.830 EA 59.32 MJGA24 24 MJ GSKT 4 18.138 EA 72.55 MJGA30 30 MJ GSKT 4 32.858 EA 131.43 CBTBNFR 3/4X4-1/2 CORE BLUE MJ T-BLT & NUT 120 2.829 EA 339.48 CBTBNFS 3/4X5 CORE BLUE MJ T-BLT & NUT 64 3.000 EA 192.00 CBTBNGU 1X6 CORE BLUE MJ T-BLT & NUT 80 5.186 EA 414.88 SUBTOTAL 12885.87 AFT521316 16 CL52 CL DI FASTITE PIPE 20 62.044 FT 1240.88 AFT521318 18 CL52 CL DI FASTITE PIPE 20 71.374 FT 1427.48 AFT52P24 24 CL52 CL DI FASTITE PIPE 20 102.143 FT 2042.86 AFT52P30 30 CL52 CL DI FASTITE PIPE 20 137.033 FT 2740.66 SUBTOTAL 7451.88 Net Total: $20337.75 Tax: $0.00 Freight: $0.00 Total: $20337.75 HOW ARE WE DOING? WE WANT YOUR FEEDBACK! Scan the QR code or use the link below to RIP complete a survey about your bids: W", https://survey.medallia.com/?bidsorder&fc=2518&on=24612 Joint Water Commission Golden Valley -Crystal -New Hope January 8, 2020 Agenda Item 4 Crystal Pump House Cradle Point and Computer Prepared by Patrick Sele, Crystal Utility Supervisor Summary The Cradle Pump House Cradle Point will create communication redundancy for all Joint Water Commission properties in the event of fiber communication failure. Financial or Budget Considerations The funding will come from the professional services budget of the General Fund. Recommended Action Motion to approve the Total Control quote in the amount of $6,798.19. Supporting Documentation • Total Control System quote (1 page) I \Joint Water Commission\Corres\DraftLetter Total Control Systems, Inc. totalcontrol 38841 Nyman Drive NE SYSTEMS,INC PO Box40 Stanchfield, MN SSOSO-0040 Phone 320-396-4442 / Fax 320- 396-4443 December 9th, 2019 To: Pat Sele Re: Crystal, MN — Verizon Cradlepoint IBR600C For Pump Station Network Redundancy Total Control Systems, Inc. (TCS) proposes to furnish, configure and install Verizon Cradlepoint unit for the Crystal Pump Station to provide Scada communication redundancy. TCS will work with LOGIS to establish a failover routine in the event the fiber optic cable path fails. All functions will be tested and verified. TCS will also move the existing Public Works SCADA computer to Pump Station and install new Dell Optiplex with 24" monitor and Microsoft Office 2019 H&B at Public Works for SCADA access and reporting. Qty. 1 Cradlepoint IBR600C unit Qty. 2 Cradlepoint IBR600C antennae Qty. 2 Cradlepoint IBR600C antennae cables Qty. 1 Dell Optiplex 3070 Micro, 24" Monitor & Office 2019 H&B Total Project Cost $6,798.19 (NO TAX INCLUDED) NOTE: Monthly Verizon service NOT included, this is a customer responsibility. We acknowledge receipt of Addendum No. . Terms are Net 30 days from invoice date. No retainage allowed. A 1.5% charge per month added to any past due balance. Price may be dependent on past credit history. This quote/proposal valid for 60 days. Work to commence after receipt of an acceptable written purchase order acknowledging acceptance of our terms. F.O.B. job -site. Freight allowed Start-up service/training, documentation and equipment adjustment is included as specified. TCSI does not accept any liquidated damages. - ALL PANELS FURNISHED BY TCS WILL HAVE A UL 508 SERIALIZED OR UL698A ENCLOSED INDUSTRIAL CONTROL PANEL RELATING TO HAZARDOUS LOCATIONS WITH INTRINSICALLY SAFE CIRCUIT EXTENSIONS LABEL, AS REQUIRED. If you have any questions regarding our proposal, please contact our office. We look forward to working with you on this project. Sincerely, TOTAL CONTROL SYSTEMS, INC. Kraig LaFreniere KL/lb Joint Water Commission Golden Valley -Crystal -New Hope January 8, 2020 Agenda Item 5 Designating Depositories for Joint Water Funds Prepared by Sue Virnig, Finance Director Summary State Law requires cities to have depositories for city funds approved annually. The attached resolution states the depository, accounts, and signature requirements (facsimile for general account) for each account. Financial or Budget Considerations None Recommended Action Motion to Approve Resolution 20-01 Designating Depositories for Joint Water Funds Attachments Resolution 20-01 Designating Depositories for Joint Water Funds (1 page) 1:1Joint Water Commission\JWC Agendas12020 Agenda\January 8 AgendaVesignating Depositiories.docx Resolution 20-01 January 8, 2020 Commissioner McDonald introduced the following resolution and moved its adoption: RESOLUTION DESIGNATING DEPOSITORIES FOR JOINT WATER FUNDS BE IT RESOLVED by the Joint Water Commission of the Cities of Golden Valley, Crystal, and New Hope that the following are named as depositories for funds on deposit as provided in the Laws of the State of Minnesota: Wells Fargo Golden Valley US Bank Golden Valley MidwestOne Bank 4M Fund BE IT FURTHER RESOLVED that the following signatories or alternates are authorized to sign on checks drawn on funds deposited: General Checking: Joint Water Chair Alternate: Joint Water Vice Chair BE IT FURTHER RESOLVED that the following shall be authorized to make investments of Joint Water Funds and shall be authorized to deposit the principal of said investments in the above named depositories and beneficial to the Joint Water Commission: Joint Water Chair, Golden Valley's Finance Director; Golden Valley Accounting Coordinator. T'Norris, CYt ATTEST: Kirk McDonald, Vice Chair The motion for the adoption of the foregoing resolution was seconded by Cruikshank and upon a vote being taken thereon, the following voted in favor thereof: Cruikshank, McDonald, Norris and the following voted against the same: none; whereupon said resolution was declared duly passed and adopted, signed by the Chair and her signature attested by the Commissioner. Joint Water Commission Golden Valley -Crystal -New Hope January 8, 2020 Agenda Item 6 Annual Election for the 2020-2021 Insurance Policy Prepared by Sue Virnig, Finance Director Summary Joint Powers obtaining liability coverage from the League of Minnesota Cities Insurance Trust must decide whether or not to waive the statutory tort liability limits to the extent of the coverage purchased. Staff recommends that the Joint Water Commission does not waive the statutory limit on tort liability established by Minnesota Statues 466.04 for the 2020-21 insurance policy. This policy is an August 1 renewal. Financial or Budget Considerations None Recommended Action Motion to Approve Resolution 20-02 Making Annual Elections for the 2020-2021 Insurance Policy Attachments Resolution 20-02 Making Annual Elections for the 2020-2021 Insurance Policy (1 page) I:1Joint Water Commission\JWC Agendas12020 AgendalJanuary 8 Agenda\Annual Elections for the 2020-2021 Insurance Policy.docx Resolution 19-02 January 8, 2020 Commissioner Cruikshank introduced the following resolution and moved its adoption: RESOLUTION MAKING ANNUAL ELECTIONS FOR THE 2020-2021 INSURANCE POLICY WHEREAS, the Golden Valley -Crystal -New Hope Joint Water Commission must declare whether or not to waive the statutory limits on tort liability established by Minnesota Statutes 456.04, and WHEREAS, the Golden Valley -Crystal -New Hope Joint Water Commission insurance period begins August 1, 2020, through July 31, 2021. NOW, THEREFORE, BE IT RESOLVED by the Commissioners of the Golden Valley -Crystal -New Hope Joint Water Commission that it does not waive the statutory limits on tort liability established by Minnesota Statutes 466.04 for the 2020-2021 insurance policy. A- ATTEST: , kjL� Kirk McDonald, Vice Chair The motion for the adoption of the foregoing resolution was seconded by Commissioner McDonald and upon a vote being taken thereon, the following voted in favor thereof: Cruikshank, McDonald, Norris and the following voted against the same: none; whereupon said resolution was declared duly passed and adopted, signed by the Chair and their signature attested by the Vice Chair. Joint dater Commission Golden Valley -Crystal -New Hope January 8, 2020 Agenda Item 7 Engagement Letter - Auditing Services for 2019 Fiscal Year Prepared by Sue Virnig, Golden Valley Finance Director Summary Each year the Joint Water Commission is required to have a State Legal Compliance Audit performed in accordance with auditing standards established by the Auditing Standards Board and Minnesota Statutes. Staff' recommends the authorization for services with MMKR for 2019 audit for $10,000. This amount is $200 more than 2018 audit services. Preliminary fieldwork will begin in January with final fieldwork starting on February 24, 2020. Finance or Budget Consideration The 2020 General Fund Budget has $120,000 for professional services. Recommended Action Motion to Approve Contract with MMKR for 2019 Audit in the amount of $10,000. Attachments MMKR 2019 Audit Contract (10 pages) 1:1Joint Water CommissionUM Agendas12020 Agenda\January 8 Agenda\Approve MMKR Contract for 2019 Audit.docx MMKR CERTIFIED PUBLIC ACCOUNTANTS December 31, 2019 Ms. Sue Vimig, Treasurer Golden Valley — Crystal — New Hope Joint Water Commission 7800 Golden Valley Road Golden Valley, MN 55427 Dear Ms. Virnig: PRINCIPALS Thomas A. Karnowski, CPA Paul A. Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA/CMA Jaclyn M. Huegel, CPA Kalen T. Karnowski, CPA Enclosed are two copies of an engagement letter which explains and confirms the basic services we expect to perform in conjunction with your upcoming audit. Assuming the letter adequately describes those services you desire, please sign both copies, return one copy to our office, and keep the other copy for your files. Please note that a second signature line has been included on our engagement letter this year and we are requesting the letter be signed by a representative of the Board of Commissioners in addition to management. The purpose of this is to provide documentation that certain required communications included in the engagement letter have been received by governance. Please do not hesitate to contact me if you believe the letter should be modified or if you have any questions. Sincerely, MALLOY, MONTAGUE, KARNOWSKI, RADOSEVICH & CO., P.A. �.wr-��cy • �ac�e�1/ William J. Lauer, CPA Principal WJL:lj Enclosures Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 - www.mmkr.com PRINCIPALS Thomas A. Karnowski, CPA Paul A. Radosevich, CPA MMKRWilliam J. Lauer, CPA James H. Eichten, CPA CERTIFIED PUBLIC Aaron J. Nielsen, CPA ACCOUNTANTS Victoria L. Holinka, CPA/CMA Jaclyn M. Huegel, CPA Kalen T. Karnowski, CPA December 31, 2019 To the Board of Commissioners and Management of the Golden Valley — Crystal — New Hope Joint Water Commission 7800 Golden Valley Road Golden Valley, MN 55427 Dear Board of Commissioners and Management: We are pleased to confirm our understanding of the services we are to provide for the Golden Valley — Crystal — New Hope Joint Water Commission (the Commission) for the year ended December 31, 2019. We will audit the financial statements of the governmental activities, each major fund, and the budgetary comparison for the General Fund, including the related notes to the financial statements, which collectively comprise the basic financial statements of the Commission as of and for the year ended December 31, 2019. Accounting standards generally accepted in the United States of America provide for certain required supplementary information (RSI), such as Management's Discussion and Analysis (MD&A), to supplement the Commission's basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board (GASB) who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the Commission's RSI in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The MD&A is required by accounting principles generally accepted in the United States of America and, if the Commission elects to prepare an MD&A, it will be subjected to certain limited procedures, but will not be audited. The introductory section accompanying the financial statements will not be subjected to the auditing procedures applied in our audit of the financial statements, and our auditor's report will not provide an opinion or any assurance on that other information. We will perform the required State Legal Compliance Audit conducted in accordance with auditing standards generally accepted in the United States of America and the provisions of the Legal Compliance Audit Guide, promulgated by the State Auditor pursuant to Minnesota Statute § 6.65, and will include such tests of the accounting records and other procedures we consider necessary to enable us to conclude that, for the items tested, the Commission has complied with the material terms and conditions of applicable legal provisions. Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com Golden Valley — Crystal — New Hope Joint Water Commission Page 2 December 31, 2019 We will also prepare a management letter for the Board of Commissioners and administration. This letter will include certain required communications to governance, and may include such things as our concerns regarding accounting procedures or policies brought to our attention during our audit, along with recommendations for improvements. Our services will not include an audit in accordance with the Single Audit Act Amendments of 1996 and the Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (Uniform Guidance), which would only be required if the Commission expended $750,000 or more in federal assistance funds during the year. If the Commission is required to have a Single Audit of federal assistance funds, this engagement letter would need to be modified. Audit Objectives The objective of our audit is the expression of opinions as to whether your financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as a whole. Our audit will be conducted in accordance with U.S. generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and will include tests of the accounting records of the Commission and other procedures we consider necessary to enable us to express such opinions. We will issue a written report upon completion of our audit of the Commission's financial statements. Our report will be addressed to the Board of Commissioners and management of the Commission. We cannot provide assurance that unmodified opinions will be expressed. Circumstances may arise in which it is necessary for us to modify our opinions or add emphasis -of -matter or other -matter paragraphs. If our opinions are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or issue reports, or may withdraw from this engagement. We will also provide a report (that does not include an opinion) on internal control related to the financial statements and compliance with the provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a material effect on the financial statements as required by Government Auditing Standards. The report on internal control and on compliance and other matters will include a paragraph that states (1) that the purpose of the report is solely to describe the scope of testing of internal control and compliance, and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control on compliance, and (2) that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. The paragraph will also state that the report is not suitable for any other purpose. If during our audit we become aware that Commission is subject to an audit requirement that is not encompassed in the terms of this engagement, we will communicate to management and those charged with governance that an audit in accordance with U.S. generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards may not satisfy the relevant legal, regulatory, or contractual requirements. Golden Valley — Crystal — New Hope Joint Water Commission Page 3 December 31, 2019 Audit Procedures — General An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the government or to acts by management or employees acting on behalf of the government. Because the determination of abuse is subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of detecting abuse. Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us, even though the audit is properly planned and performed in accordance with U.S. generally accepted auditing standards and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. However, we will inform the appropriate level of management of any material errors, fraudulent financial reporting, or misappropriation of assets that comes to our attention. We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential, and of any material abuse that comes to our attention. Our responsibility as auditors is limited to the period covered by our audit and does not extend to later periods for which we are not engaged as auditors. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will require certain written representations from you about your responsibilities for the financial statements; compliance with laws, regulations, contracts, and grant agreements; and other responsibilities required by generally accepted auditing standards. Audit Procedures — Internal Control Our audit will include obtaining an understanding of the government and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards. An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. Accordingly, we will express no such opinion. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under the American Institute of Certified Public Accountants (AICPA) professional standards and Government Auditing Standards. Golden Valley — Crystal — New Hope Joint Water Commission December 31, 2019 Audit Procedures — Compliance Page 4 As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the Commission's compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards. Other Services We will also assist in preparing the financial statements and related notes of the Commission in conformity with U.S. generally accepted accounting principles based on information provided by you. These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards. We will perform the services in accordance with applicable professional standards. The other services are limited to the financial statement services previously defined. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities. Management Responsibilities Management is responsible for designing, implementing, establishing, and maintaining effective internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, including evaluating and monitoring ongoing activities to help ensure that appropriate goals and objectives are met; following laws and regulations; and ensuring that management and financial information is reliable and properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application of accounting principles, for the preparation and fair presentation of the financial statements and all accompanying information in conformity with U.S. generally accepted accounting principles, and for compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Management is also responsible for making all financial records and related information available to us and for the accuracy and completeness of that information. You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, (2) additional information that we may request for the purpose of the audit, and (3) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. Your responsibilities include adjusting the financial statements to correct material misstatements and for confirming to us in the written representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. Golden Valley — Crystal — New Hope Joint Water Commission Page 5 December 31, 2019 You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the government complies with applicable laws, regulations, contracts, agreements, and grants and for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations, contracts or grant agreements, or abuse that we report. You are responsible for the preparation of the supplementary information, which we have been engaged to report on, in conformity with U.S. generally accepted accounting principles. You agree to include our report on the supplementary information in any document that contains and indicates that we have reported on the supplementary information. You also agree to include the audited financial statements with any presentation of the supplementary information that includes our report thereon OR make the audited financial statements readily available to users of the supplementary information no later than the date the supplementary information is issued with our report thereon. Your responsibilities include acknowledging to us in the written representation letter that (1) you are responsible for presentation of the supplementary information in accordance with GAAP; (2) you believe the supplementary information, including its form and content, is fairly presented in accordance with GAAP; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information. Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying and providing report copies of previous financial audits, attestation engagements, performance audits, or other studies related to the objectives discussed in the Audit Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or other studies. You are also responsible for providing management's views on our current findings, conclusions, and recommendations, as well as your planned corrective actions, for the report, and for the timing and format for providing that information. You agree to assume all management responsibilities relating to the financial statements and related notes and any other nonaudit services we provide. You will be required to acknowledge in the management representation letter our assistance with preparation of the financial statements and related notes and that you have reviewed and approved the financial statements and related notes prior to their issuance and have accepted responsibility for them. Further, you agree to oversee the nonaudit services by designating an individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate the adequacy and results of those services; and accept responsibility for them. Engagement Administration, Fees, and Other The assistance to be supplied by your personnel, including the preparation of schedules and analysis of accounts, typing all cash or other confirmations we request, and locating any invoices selected by us for testing, will be discussed and coordinated with you. We will provide copies of our reports to the Commission; however, management is responsible for �- distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection. Golden Valley — Crystal — New Hope Joint Water Commission Page 6 December 31, 2019 The audit documentation for this engagement is the property of Malloy, Montague, Karnowski, Radosevich & Co., P.A. (MMKR) and constitutes confidential information. However, subject to applicable laws and regulations, audit documentation and appropriate individuals will be made available upon request and in a timely manner to a regulatory agency or its designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes of a quality review of the audit, to resolve audit findings, or to carryout oversight responsibilities. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of MMKR personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies. The audit documentation for this engagement will be retained for a minimum of five years after the report release date or for any additional period requested by the regulatory agency. If we are aware that a federal awarding agency or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation. We expect to begin our audit shortly after the end of your fiscal year and to issue our reports prior to June 30, 2020. William J. Lauer, CPA, is the engagement partner and is responsible for supervising the engagement and signing the reports or authorizing another individual to sign them. Our fees for these services will be at our standard hourly rates plus out-of-pocket costs (such as report reproduction, word processing, postage, travel, copies, telephone, etc.) except that we agree that our gross fee, including expenses, will not exceed $10,000.Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. The above fees are based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If we find that additional audit procedures are required, or if additional services are requested by the Commission, those services will be billed at our standard hourly rates. Additional audit procedures might be required for certain accounting issues or events, such as new contractual agreements, transactions and legal requirements of new bond issues, new funds, major capital projects, new tax increment districts, if there is an indication of misappropriation or misuse of public funds, or if significant difficulties are encountered due to the lack of accounting records, incomplete records, or turnover in the Commission's staff. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. In accordance with our firm policies, work may be suspended if your account becomes 60 days or more overdue and may not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report. You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date of termination. With regard to the electronic dissemination of audited financial statements, including financial statements published electronically on your website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document. Golden Valley — Crystal — New Hope Joint Water Commission Page 7 December 31, 2019 If you intend to publish or otherwise reproduce the financial statements, such as in a bond statement, and make reference to our firm name, you agree to provide us with printers' proofs or masters for our review and approval before printing. You also agree to provide us with a copy of the final reproduced material for our approval before it is distributed. During the year, you might request additional services such as routine advice, assistance in implementing audit recommendations, review of your projections or budgets, and other similar projects. Independence standards allow us to perform these routine services; however, it is important that you understand that we are not allowed to make management decisions, perform management functions, nor can we audit our own work or provide nonaudit services that are significant to the subject matter of the audit. Please be aware that e-mail is not a secure method of transmitting data. It can be intercepted, read, and possibly changed. Due to the large volume of a -mails sent daily, the likelihood of someone intercepting your e-mail is relatively small, but it does exist. We will communicate with you via e-mail, if you are willing to accept this risk. To ensure that MMKR's independence is not impaired under the AICPA Code of Professional Conduct, you agree to inform the engagement partner before entering into any substantive employment discussions with any of our personnel. If a dispute occurs related in any way to our services, our firm and the Commission agree to discuss the dispute and, if necessary, to promptly mediate in a good faith effort to resolve it. We will agree on a mediator, but if we cannot, either of us may apply to a court having personal jurisdiction over the parties for appointment of a mediator. We will share the mediator's fees and expenses equally, but otherwise will bear our own attorney fees and costs of the mediation. Participation in such mediation shall be a condition to either of us initiating litigation. To allow time for the mediation, any applicable statute of limitations shall be tolled for a period not to exceed 120 days from the date either of us first requests in writing to mediate the dispute. The mediation shall be confidential in all respects, as allowed or required by law, except that our final settlement positions at mediation shall be admissible in litigation solely to determine the identity of the prevailing party for purposes of the awarding of attorney fees. We both recognize the importance of performing our obligations under this agreement in a timely way and fully cooperating with the other. In the event that either of us fails to timely perform or fully cooperate, the other party may, in its sole discretion, elect to suspend performance or terminate the agreement regardless of the prejudice to the other person. We agree we will give 10 days' written notice of an intent to suspend or terminate, specifying the grounds for our decision, and will give the other an opportunity to cure the circumstances cited as grounds for that decision. In the event of suspension or termination, all fees and costs are immediately due on billing. We agree that it is important that disputes be discussed and resolved promptly. For that reason, we agree that, notwithstanding any other statutes of limitations or court decisions concerning them, all claims either of us may have will be barred unless brought within one year of the date the complaining party first incurs any damage of any kind, whether discovered or not, related in any way to acts or omissions of the other party, whether or not the complaining party seeks recovery for that first damage and whether or not we have continued to maintain a business relationship after the first damage occurred. Notwithstanding anything in this letter to the contrary, we agree that regardless of where the Commission is located, or where this agreement is physically signed, this agreement shall have been deemed to have been entered into at our office in Hennepin County, Minnesota, and Hennepin County shall be the exclusive venue and jurisdiction for resolving disputes related to this agreement. This agreement shall be interpreted and governed under the laws of Minnesota. Golden Valley — Crystal — New Hope Joint Water Commission December 31, 2019 Page 8 When requested, Government Auditing Standards require that we provide you with a copy of our most recent external peer review report and any letter of comment, and any subsequent peer review reports and letters of comment received during the period of the contract. Our most recent peer review report accompanies this letter. We appreciate the opportunity to be of service to the Commission and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Sincerely, MALLOY, MONTAGUE, KARNOWSKI, RADOSEVICH & CO., P.A. !/V.v�Awur �GtG�P�t/ William J. Lauer, CPA Principal WJL:lj Response: This letter correctly sets forth the understanding of the Golden Valley — Crystal — New Hope Joint Water Commission. Board of Commissioners Representative - By: Title: Date: _— Lo Title: Date: Management Representative ►� Rose Certified Public Accountants Report on the Firm's System of OualitY Control To the Principals of Malloy, Montague, Karnowski, Radosevich, and Co., P.A. and the Peer Review Committee of the Minnesota Society of CPAs We have reviewed the system of quality control for the accounting and auditing practice of Malloy, Montague, Karnowski, Radosevich, and Co., P.A. (the firm) in effect for the year ended May 31, 2019. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants (Standards). A summary of the nature, objectives, scope, limitations of, and the procedures performed in a System Review as described in the Standards may be found at www.aicpa.org/prsummarX. The summary also includes an explanation of how engagements identified as not performed or reported in conformity with applicable professional standards, if any, are evaluated by a peer reviewer to determine a peer review rating. Firm's Responsibility The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. The firm is also responsible for evaluating actions to promptly remediate engagements deemed as not performed or reported in conformity with professional standards, when appropriate, and for remediating weaknesses in its system of quality control, if any. Peer Reviewer's Res onsi ilit Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review. Required Selections and Considerations Engagements selected for review included engagements performed under Government Auditing Standards, including compliance audits under the Single Audit Act and an audit of an employee benefit plan. As part of our peer review, we considered reviews by regulatory entities as communicated by the firm, if applicable, in determining the nature and extent of our procedures. Opinion In our opinion, the system of quality control for the accounting and auditing practice of Malloy, Montague, Karnowski, Radosevich, and Co., P.A. in effect for the year ended May 31, 2019 has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with defclency(Ies) or fall. Malloy, Montague, Karnowski, Radosevich, and Co., P.A. has received a peer review rating of pass. X90-.,V si:7- KerberRose SC September 25, 2019 4211 N. Lightning Drive ( Appleton, Wl 54913 % p�jmeGlOba� I A.As ndwi—funfing Firms P: (920) 993-0105 Toll Free: (888) 725-5277 F: (920) 993-0116 Website: https;(/kerbenose.com KrrlrrR~ an! n iu.5fa+'deon 04".1 fi'm w PmwGlobal Joint Water Commission TAC Meeting -� Tuesday November 27, 2019 2:00 PM 1. Project Updates a. Elevated Towers + Worked completed except turf and hard surface restoration — scheduled for spring. b. Valve Work c. Reservoir Work ■ 65-17: GV Project was awarded to Keys Well Drilling. • Pump has been installed and will be wired and balanced in December. + Crystal pump and motor will be pulled and replaced late winter/early spring. • GV reservoir crack filling + Recommend award to Slack Painting + GV will drain reservoir in December to prepare for crack filling project — working with MPRB. d. Valve Replacement + Douglas and 39th valve replaced this year. ■ 2020 project will focus near Crystal reservoir and on 42nd heading west from Douglas. + Will also replace a 16-inch valve within Crystal M&O project — Pennsylvania and 32nd e. Tower Painting ■ KLM provided specs and project manual for Golden Valley tower painting in 2020. • Staff is working with KLM on specs (May 2020 to Aug 2021 construction). ■ Golden Valley will replace altitude valve while tower is down for painting. f. Miscellaneous + Between the three JWC cities, we will stock two sets of PCCP to DIP pipe adapters for each size JWC pipe. Adapters to be stored in Medicine Lake Road tower. + Will bring quotes to JWC for purchase. • JWC TAC will perform an EPA Vulnerability Self Assessment and work with a local Emergency G:1JWCIJWC _TAC1Minutes\JWC TAC Meeting Minutes_11.27.19.docx ® Management team to present our Emergency Response Plan. 0 Mark and Pat to lead. NH will bring Stantec overage to next JWC meeting + GV will bring amended CAT Ziegler generator maintenance agreement to include Crystal G:1JWCIJWC _TAC1MinutesWWC TAC Meeting Minutes_11.27.19.docx